Ep. 36 - Performance Pay in Construction: Boost Culture and Profits

What if your workers treated every dollar of your labor budget as if it were their own money? In this eye-opening conversation, Michael Fortinberry, co-founder and president of Protiv, reveals the fundamental flaw in how blue-collar businesses compensate their workforce – and how to fix it.The contradiction is startling: contractors bid jobs based on production rates and material quantities, then pay their workers by the hour – essentially rewarding them for taking longer. "Their incentive is linked to time, the very thing that is the antagonist toward our success," Michael explains. This misalignment creates an adversarial relationship between management goals and worker compensation.Performance-based pay offers a powerful alternative. By sharing the savings from under-budget jobs with the workers who created those efficiencies, companies transform their culture from merely putting in time to actively seeking better ways to complete projects. The results are revolutionary – crews begin holding each other accountable, equipment maintenance improves, and quality increases as workers see a direct financial benefit from doing things right the first time.Host Sy Kirby shares his own journey toward implementing this model in his underground utilities company, highlighting the challenges of establishing the accounting and production tracking systems necessary to make it work. Michael emphasizes that successful implementation requires mastering your numbers through solid estimating and job costing, then building transparency around budgets and goals.The conversation explores how Protiv software manages the legal complexities of performance bonuses while integrating with existing construction management platforms. More importantly, it addresses the cultural transformation required – authentic leadership, clear communication, and patience through the transition period when some workers inevitably resist the change.Want to discover how performance pay could revolutionize your construction business? This episode delivers practical insights that could transform your profitability and workplace culture.Blue Collar Performance MarketingClick the link above for a free marketing audit with insights to boost your blue collar business!PodcastVideos.comPut your show in front of audiences that care with PodcastVideos.com's wide range of podcasts!Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.Support the showCheck out our Sponsors:PayDirt Support: https://paydirtsupport.com/ Spoil Stack: https://spoilstack.com/o/blueTune in to the Blue Collar Business Podcast with Sy Kirby for the rawest, most relevant stories behind building a successful business in the trades. New episodes drop every Wednesday at 5 am CST—put your boots on and get ready to level up.Follow and stay connected:Website: bluecollarbusinesspodcast.comYouTube: youtube.com/@BlueCollarBusinessPodcastInstagram: @bluecollarbusinesspodcastTikTok: @bluecollarbusinesspodFacebook: Blue Collar Business PodcastLinkedIn: Blue Collar Business PodcastNever miss an update—follow, subscribe, and join the conversation!